Sosandar Regulatory News (SOS)

Orogen Gold

("Orogen" or the "Company")

Interim Results for the six months ended 30 June 2013

Orogen Gold plc (AIM: ORE), the AIM quoted gold exploration company, announces its interim results for the six months ended 30 June 2013.

Highlights

· Near surface gold discovery in Armenia - impressive widths and grades

· Maiden gold resource at Mutsk targeted for 2014

· $2.5 million / 80% earn-in on Mutsk gold property scheduled to complete in 2016

· Drilling high-grade trench discoveries at Deli Jovan in Serbia targeting open-pittable resource

· Strong balance sheet and cash position

· Mutually agreed with Darwin Strategic to cancel Equity Finance Facility

John Barry, Chairman of Orogen Gold, commented: "I am delighted with our progress during the period. In particular I am excited about the new gold discovery In Armenia where we have reported very impressive initial exploration drilling results from our Mutsk gold project which cut relatively high grades over robust widths near surface. We are continuing with our drilling programme at Deli Jovan and are keen to resume drilling at Mutsk during the current season, subject to rig availability and weather conditions. We look forward to another exciting round of drilling results over the next few months."

Enquiries:

About Orogen

Orogen is a UK public company quoted on the London Stock Exchange AIM market (ticker: ORE). The Company's activities are focused on mineral exploration and development in Europe. The Deli Jovan gold exploration district in Serbia is the Company's main operational project. The historic high-grade gold mining camp was last in production prior to World War II and has been significantly under-explored in modern times. The Mutsk gold project in Armenia was optioned by Orogen early in 2013 to follow-up reports of a new epithermal discovery within an established gold district. 

Chairman's Statement

Orogen's strategy as a gold exploration and project development company is to acquire prospective early-stage growth opportunities at a low entry cost within the European arena. In particular, we are focused on the gold grade of our prospects and gold grade for us is a proxy for profit margin.

I am delighted with our progress during the period. In particular, I am excited about our new gold discovery in Armenia where we have reported very impressive initial drilling results from the Mutsk gold project which cut relatively high grades over robust widths near surface. We are continuing with drilling programmes on both of our gold projects and look forward to another exciting round of drilling results over the next few months. Although at an early stage, the Mutsk project in particular has the potential to be a Company-maker. We are keen to resume drilling on this project before the winter. Results from Deli Jovan in Serbia are most encouraging and current drilling is targeting the potential for a near surface open pittable gold resource close to the old Gindusa mine.

The exploration potential at the Mutsk gold project was recognised late last year by Orogen management and we moved quickly to secure an interest in the property. This opportunity was uncovered for a total cost to date of £200,000. With only a handful of drill-holes completed on the project the potential is clear. Drilled widths and average grades even at this early stage show that if we can establish strike continuity in the next round of drilling then we can target a maiden inferred gold resource for the property in 2014.

The Mutsk gold project sits in the very exciting and little explored part of the major Tethyan metallogenic belt, which includes Lydian International's Amulsar gold deposit (published resource 2.3 million ounces of gold) located just 30km from Mutsk.

In the coming weeks our geologists, including a Canadian epithermal and porphyry expert, will be on site in Armenia to plan the next phase of drilling which we hope to commence later this year and complete in the 2014 field-season.

"The easiest place to make a new mine is beside an old one" the saying goes and that has been our approach at Deli Jovan in Serbia. The initial thrust of our exploration was to find continuity of the high-grade lodes beneath the old underground workings at the Rusman and Gindusa Mines. The main gold lode, and indeed newly discovered lodes, was confirmed by drilling in 2012 as deep as 280m, with most of the 15 drill holes intersecting gold mineralisation. However, the continuity of width and grade has been challenging with respect to providing sufficient confidence to commit to commence mining and therefore our focus has shifted to an exciting new near-surface discovery at Gindusa West where late last year trenching cut exceptionally high gold grades - 3m averaging 29.6 g/t. 

More good news came during H1 2013, with further trenching at Gindusa West returning excellent gold grades, while also confirming a 300m strike-extent on the shallow mineralised zone. Current drilling is testing the possible shallow extensions to this high-grade surface mineralisation and success would certainly warrant a second-phase of drilling on this target to establish an initial resource and put us on a track towards evaluation of the potential for a shallow starter open-pit operation to exploit this high-grade mineralisation. Assay results should be available in Q4 2013 from Deli Jovan.

Over the last month the interest in junior gold exploration companies has increased and it is encouraging to see that genuinely good exploration results are now being rewarded with a lift in share prices. Although markets remain volatile, we are optimistic and believe that with continuing positive exploration results we will enjoy strong market support and for this reason we feel we can no longer maximise the benefit of an EFF and have therefore mutually agreed with Darwin Strategic to cancel the facility.

Orogen's treasury is relatively strong and, with comparatively very low overheads, the vast bulk of the funds raised from our shareholders go into our projects. We work very cost effectively with our partners in Armenia and Serbia by leveraging on their established infrastructures. We bring in the best experts in areas of specific technical expertise in structural geology, epithermal gold deposits and narrow-vein mining so that we maximise effectiveness in our decision making. Our general administration is run cost effectively from our Dublin office by sharing a highly experienced team with other resource companies. This ensures that we squeeze the greatest value from the funds entrusted to us by our shareholders. Our philosophy is very much one of alignment and incentivisation of management with our stakeholders' interests, based on success and value creation. Similarly, we respect our people, our partners and the communities and environments in which we work.

________________

John Barry

Chairman

Date: 24 September 2013

Chief Executive's Statement

The six month period to 30 June 2013 was significant in that Orogen added a second high-quality asset to the Company. We are pleased to report important progress by the Company on both projects.

Mutsk project, Armenia

In January, we concluded negotiations on an earn-in agreement on the Mutsk gold project in Southern Armenia. Our aim was to confirm the potential of a low-sulphidation gold epithermal system discovered by our partners, Georaid CJSC in 2011 through a programme of shallow vertical drilling. Orogen's verification work comprised re-logging and sampling of existing drill core, as well as detailed mapping and sampling in the under-explored permit area. We also commenced a short programme of diamond drilling in Q2, the results of which we announced in August 2013.

Orogen believed that the original sampling during the 2011 drill programme may have understated the grades and widths of the zone, as not all drill core was sampled and the sampling process was not fully compliant with best practice. Re-sampling of most of the historic core was carried out under Orogen's supervision, with tighter QA/QC control over the process. This confirmed substantially higher grades and greater widths than reported previously.

Previous results reported included:

B-5: 14.4m @ 1.09g/t Au, including 5.0m @ 2.75g/t Au

B-7: 5.1m @ 1.26g/t Au

Re-sampling and re-assaying by Orogen of the same holes returned the following results:

B-5: 23.8m @ 3.34g/t Au, including 17.5m @ 4.17g/t Au

B-7: 14.0m @ 3.27g/t Au

Confirmatory drilling of six short vertical and angled holes undertaken by Orogen repeated the higher tenor of gold grades, with assay intervals including 11.0m @ 5.56g/t Au (hole OG13-01) and 10.2m @ 5.73g/t Au (hole OG13-02). The re-sampling and drilling programme undertaken by the Company has suggested that the mineralised zone extends over almost 1km of strike, with possible extension to 2km+. The results demonstrate an exciting new gold discovery at shallow depths within an established epithermal district. While further work is needed to fully understand the controls on mineralisation, we are particularly encouraged by the high grades and widths encountered in several of the holes and the apparently large strike extent of the system.

We have announced our intention to move into Phase 2 of programme to earn an 80% interest in the property.

Deli Jovan project, Serbia

At Deli Jovan, following receipt of excellent trenching results, the Board took the decision to re-prioritise drilling to focus on shallow testing of the high grade trench discoveries at Gindusa West.

Exploration undertaken included further high-density soil sampling, followed by step-out trenching from the 2012 discovery trench, TAG-2, reported last year (3m @ 29.6g/t Au) in order to extend and define the mineralised zone.

Highlights of the 2013 work based on channel sample assaying include a 3.5m intercept grading 61.42g/t Au including a 2m zone assaying 107g/t Au in trench T6, on a separate structure to the north of the TAG-2 intercept. A further 350m to the northwest, trench T8 intersected a mineralised shear zone assaying 5.75g/t Au over 2.0m, including 1m @ 8.88g/t Au.

Interpretation of the results received indicated that the main gold-mineralised, steeply north-dipping east-west shear structure intersected in trench TAG-2 late last year, extends for at least 360m. Widths range from 1.0-13.0m and gold grades range from 1.44-29.55g/t. The continuity and width of this zone at surface is particularly encouraging as previously mapped vein structures at Deli Jovan tend to be narrower and of shorter strike extent. 

A minimum 1,000m drill programme is planned in Q3 to test the sub-surface extensions of the mineralised zones encountered in trenching. Results will be reported as they are received and interpreted.

Financial and Corporate Review

At 30 June 2013 cash stood at £1,553,000 (31 December 2012: £1,621,000). The loss for the period amounted to £185,000 (6 months to 30 June 2012: £263,000).

Outlook

Orogen has reached a very exciting stage in its development. We look forward to announcing further progress from both projects.

_____________________

Ed Slowey

Chief Executive

Date: 24 September 2013

Group statement of comprehensive income

For the six months ended 30 June 2013

Group statement of financial position

As at 30 June 2013

Group cash flow statement

For the six months ended 30 June 2013

Group statement of changes in equity

For the six months ended 30 June 2013

Notes to the Accounts

1. General information

Orogen Gold plc is a Company incorporated and domiciled in England and Wales. Details of the registered office, the officers and advisers to the Company are presented on the Company information page on the Company's website www.orogengold.com. The Company's offices are in London and Dublin. The Company is quoted on the AIM market of the London Stock Exchange (Ticker: ORE.L). The Company is focused on gold and minerals exploration in Europe. Exploration operations are based in Serbia (Deli Jovan project) and in Armenia (Mutsk project).

2. Basis of preparation

3. Loss per share

Basic loss per share is calculated by dividing the loss attributable to equity shareholders by the weighted average number of ordinary shares in issue during the period:

Basic and diluted earnings per share are the same, since where a loss is incurred the effect of outstanding share options and warrants is considered anti-dilutive and is ignored for the purpose of the loss per share calculation. The share options outstanding as at 30 June 2013 totalled 265,000,000 (30 June 2012: 245,000,000, 31 December 2012: 265,000,000) and are potentially dilutive.

4. Exploration and evaluation assets

Acquisition of Deli JovanExploration d.o.o

On 13 June 2012, the Group acquired 55% of the Serbian company Deli Jovan Exploration d.o.o. (the holding company of the Deli Jovan Exploration permit) following the completion of CAD1.5 million Phase 1 exploration financing of the Deli Jovan gold project. The remaining 45% of Deli Jovan Exploration d.o.o. is held by Reservoir Minerals Inc.. The main asset of Deli Jovan Exploration d.o.o. on the date of acquisition was the earn-in agreement on the Deli Jovan gold project. The transfers and other adjustments in the period to 30 June 2012 includes a £3,173,000 goodwill transfer to exploration and evaluation assets on completion of the first phase of the earn-in and the application of the 55% earn-in to the transfer of ownership of 55% of Deli Jovan Exploration d.o.o. to the Group.

5. Cash and cash equivalents

6. Share capital

On 27 December 2012, 34,000,000 new ordinary shares of £0.001 each were issued at £0.006 per share by way of share placing. The cash consideration received by the Company was £192,000.

On 17 October 2012, 240,000,000 new ordinary shares of £0.001 each were issued at £0.005 per share by way of share placing. The cash consideration received by the Company was £1,137,000.

7. Subsequent events

On 30 August 2013, Orogen announced assay results for its first test diamond drilling programme at the Mutsk gold project in Armenia. In addition to the announcement of the results, Orogen confirmed that the Company had informed Georaid CJSC (Orogen's Armenian partners on the project) that Orogen will proceed to Phase 2 of the programme under which Orogen has an option to earn an 80 per cent interest in the Mutsk project by spending a total of US$2.5 million by end August 2016.

8. Copy of the Interim Report

Copies of the Interim Report are available to download from the Company's website at

 www.orogengold.com.